Peak could launch float this week Mathew Murphy September 13,...

Peak could launch float this week Mathew Murphy
September 13, 2010

PERTH-based Peak Oil and Gas could launch its $55 million initial public offering, set to be the biggest float in the oil and gas sector this year, as early as this week.

The company has already attracted $10 million in seed capital, including $2 million out of the pocket of Norwegian millionaire Peter Smedvig, in preparation for the public raising.

It is believed that Macquarie is acting as lead manager on the float, having supported Peak director Jim Durrant's Strike Oil IPO in 2004. Macquarie is also understood to be encouraged by the involvement of former Hardman Resources managing director Ted Ellyard, who will act as an adviser to Peak. Chinese state-owned company Hebei Mining is also one of its major shareholders.

Peak's main play will be the Cadlao operation in the Philippines, discovered by Amoco in 1977 and closed in 1991 as oil dropped to $US19 ($A20) a barrel.

Managing director Jeff Steketee told BusinessDay he was confident Cadlao would not suffer the same fate as the country's other producing oil field - Kairiki Energy's Tindalo - which has suffered water management issues resulting in the 18,000 barrels coming out every day containing only about 5000 barrels of oil.

''More than 50 per cent of the funds raised will be going towards Cadlao,'' Mr Steketee said. ''Amoco produced 11 million barrels out of this field previously.

''We know the reservoir, we know it can produce, we can manage the water which is the problem with Tindalo.''

The company expects to list on the Australian Securities Exchange in November.